The data support the conclusions that biofuels policies are having a minimal impact on food prices andresult in reducinggreenhouse gas emissions (GHG). For instance, OECD credits ethanol produced from corn starch with a 30% reduction in greenhouse gas (GHG)emissions if using natural gas, and a 50% reduction in GHG if the facilityis powered by biomass.
Based on this finding, a moratorium is not warranted. In addition, the modeling included in the report suggests that a 28% drop in world oil prices would cause a 12% reduction in world coarse grain prices ($0.75 per bushel in thecase of corn today), underscoring the fact that skyrocketing oil prices are the largest driver behind increasing grain prices.
By contrast, removing biofuel mandates like the Renewable Fuels Standard(
